Mexico Adjusts Employment Subsidy, Income Tax Brackets Unchanged

Mexico’s income tax brackets are unchanged for 2025, while the monthly wage threshold up to which the employment subsidy for low-income employees applies increased Jan. 1, the country’s government said.

The employment subsidy applies to employees who earn up to 10,171 Mexican pesos (US$496.19) in 2025, up from 9,081 Mexican pesos per month, under a decree (Spanish) published Dec. 31. The maximum subsidy per month is 13.8% of the unit of measure and update’s monthly value in 2025, instead of 11.82%, the decree said. However, since the value of the unit of measure and update changes Feb. 1 of each ...